Singapore office space prices drop by 1.5% in 2Q

Office space rentals also declined by 3.5%.

Office space owners are finding it harder to find occupants for their empty properties as office space rentals fall by 3.5% compared to a 2.1% decline in rentals the previous quarter.

According to a release by the Urban Redevelopment Authority, there was a total supply of about 1.022 million sq m GFA of office space in the pipeline.

“The amount of occupied office space increased by 30,000 sq m (nett) in 2nd quarter 2016, compared to the increase of 1,000 sq m (nett) in the previous quarter,” the report said.

Meanwhile, the stock of office space increased by 27,000 sq m (nett) in 2nd quarter 2016, compared to the decrease of 23,000 sq m (nett) in the previous quarter.

“As a result, the island-wide vacancy rate of office space at the end of 2nd quarter 2016 fell to 9.1%, from 9.2% at the end of the previous quarter,” the report added.